Sensex, Nifty maintain gaining rally amid improved manufacturing sector growth

A positive macroeconomic data helped Indian equity benchmarks maintained their gaining rally in early afternoon deals, with both Sensex and Nifty trading near their intraday high points, despite negative cues from other Asian markets. India's manufacturing sector growth improved in the month of November, as strengthening client demand and more favourable input supply boosted production volumes. According to the report, the seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) grew to 56.0 in November 2023 from 55.5 in October 2023. 

Adding more optimism among traders, the provisional data from the National Stock Exchange showed that with an infusion of Rs 8,147.85 crore on November 30 alone, foreign investors continued to be net buyers of Indian equities for the fifth straight session. The NSDL data showed that the foreign portfolio investors (FPIs) bought stocks worth around $1.2 billion in the last four sessions.

On the global front, Asian markets were trading mostly in red, even as the manufacturing sector in South Korea was stagnant in November, with a manufacturing PMI score of 50.0. That's up from 49.8 in October and it moves right on the boom-or-bust line of 50 that separates expansion from contraction. Manufacturing companies registered a broad stabilization in output levels, with the latest reading of the respective seasonally adjusted index the highest since April 2022. 

The BSE Sensex is currently trading at 67495.49, up by 507.05 points or 0.76% after trading in a range of 67149.07 and 67557.14. There were 24 stocks advancing against 6 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.87%, while Small cap index was up by 0.70%.

The top gaining sectoral indices on the BSE were Utilities up by 2.28%, Power up by 2.20%, PSU up by 1.86%, Capital Goods up by 1.48% and FMCG up by 1.38%, while there were no losing sectoral indices on the BSE. 

The top gainers on the Sensex were NTPC up by 4.54%, ITC up by 2.81%, Axis Bank up by 2.21%, Larsen & Toubro up by 2.19% and Asian Paints up by 1.60%. On the flip side, Wipro down by 1.34%, Infosys down by 0.36%, Bharti Airtel down by 0.35%, HCL Tech. down by 0.10% and Kotak Mahindra Bank down by 0.09% were the top losers.

Meanwhile, the output of eight core industries posted a growth of 12.1 percent in October 2023 on the back of robust expansion in coal, electricity, cement and steel. Core sector growth was a mere 0.7 percent in October 2022. The Eight Core Industries coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity comprise 40.27 percent of the weight of items included in the Index of Industrial Production (IIP).

Cement production, having 5.37 per cent weight increased by 17.1 per cent in October, 2023 over October, 2022 and its cumulative index increased by 12.2 per cent during April to October, 202324 over corresponding period of the previous year. Coal production, having 10.33 per cent weight increased by 18.4 per cent in October, 2023 over October, 2022 and its cumulative index increased by 13.1 per cent during April to October, 202324 over corresponding period of the previous year. Steel production having 17.92 per cent weight increased by 11.0 per cent in October, 2023 over October, 2022 and its cumulative index increased by 14.5 per cent during April to October, 202324 over corresponding period of the previous year. 

Electricity generation having 19.85 per cent weight increased by 20.3 per cent in October, 2023 over October, 2022 and its cumulative index increased by 7.9 per cent during April to October, 202324 over corresponding period of the previous year. Fertilizer production having 2.63 per cent weight increased by 5.3 per cent in October, 2023 over October, 2022 and its cumulative index increased by 6.7 per cent during April to October, 202324 over corresponding period of the previous year.

Natural Gas production having 6.88 per cent weight increased by 9.9 per cent in October, 2023 over October, 2022 and its cumulative index increased by 5.1 per cent during April to October, 202324 over corresponding period of the previous year. Petroleum Refinery production having 28.04 per cent weight increased by 4.2 per cent in October, 2023 over October, 2022 and its cumulative index increased by 4.0 per cent during April to October, 202324 over corresponding period of the previous year. Crude Oil production having 8.98 per cent weight increased by 1.3 per cent in October, 2023 over October, 2022, while its cumulative index declined by 0.1 per cent during April to October, 202324 over corresponding period of the previous year.

The CNX Nifty is currently trading at 20269.65, up by 136.50 points or 0.68% after trading in a range of 20183.70 and 20285.15. There were 38 stocks advancing against 12 stocks declining on the index.

The top gainers on Nifty were NTPC up by 4.55%, ITC up by 2.79%, Larsen & Toubro up by 2.28%, Axis Bank up by 2.21% and Asian Paints up by 1.61%. On the flip side, Wipro down by 1.30%, HDFC Life Insurance down by 0.93%, Bajaj Auto down by 0.63%, SBI Life Insurance down by 0.49% and Cipla down by 0.49% were the top losers.

Asian markets were trading mostly in red; Hang Seng declined 93.17 points or 0.55% to 16,949.71, Jakarta Composite plunged 31.19 points or 0.44% to 7,049.55, KOSPI dropped 30.28 points or 1.21% to 2,505.01 and Nikkei 225 slipped 55.38 points or 0.17% to 33,431.51, while Taiwan Weighted added 4.5 points or 0.03% to 17,438.35, Straits Times rose 13.86 points or 0.45% to 3,086.85 and Shanghai Composite strengthened 3.75 points or 0.12% to 3,033.42.